I pretty much just followed the lesson manual. I showed the picture of Jesus being baptized and asked the kids what they saw in that picture. They all knew he was being baptized, which is great. They also pointed out water and mountains, and I pointed out the white clothes.
I then showed the picture in the manual of the girl being baptized and asked what they saw in that picture. They said it was a girl being baptized and that there was water and white clothes. I pointed out John the Baptist and how he held his hands while baptizing Jesus, and then showed the man in the other picture and how his hands were the same.
I explained that when they are 8 years old they will get to be baptized. A couple of the kids mentioned cousins or siblings that had been baptized. I told them that when they are baptized they make a covenant with Heavenly Father. I asked them if they could say the word, "covenant" and explained that a covenant is a promise. So when we are baptized it washes away our sins and we make a promise with Heavenly Father that we will be like Jesus and choose the right and make good choices.
I showed them a picture of a little girl after baptism receiving her confirmation blessing. I told them that after we are baptized, we receive a blessing. Priesthood holders put their hands on our head and say a special prayer and it is during this prayer that we receive the Holy Ghost. I explained that the Holy Ghost helps us know right from wrong so that we can make good choices in our life.
I had them color this picture from the manual.